Investment Strategy
EHCP's investment strategy revolves around the thesis that needs-based, demographic and event-driven real estate asset classes will outperform other major real estate sectors, while also producing more predictable investment outcomes. We invest in multifamily, senior housing, student housing, and storage assets across the United States.
Across the spectrum of needs-based real estate, East Hill avoids sectors and investments that create single threat exposure, such as industrial and medical office. While avoiding single threat risk, the housing and storage sectors provide natural diversification and inflationary hedges. East Hill’s preferred asset classes have multiple tenants that have average lease terms of one year or less.
Our competitive advantage and differentiated strategy originates from our ability to uncover value in middle-market transactions, where there is a greater volume of opportunities, less competition, and more pricing inefficiency. While most institutional investors and REITs prefer to purchase large individual assets and portfolios, EHCP works with local operators to aggregate regional portfolios that will be positioned for institutional exit opportunities.
Investment Sourcing
EHCP sources investment opportunities utilizing its deep industry knowledge, research, and network of relationships with owners, operators, and brokers. Due to the large number of transactions we see, we are able to remain highly selective of which opportunities we pursue.
Detailed Underwriting & Data-Driven Market Analysis
Select opportunities undergo a rigorous and collaborative underwriting process, involving feedback from both acquisitions and asset management teams. We underwrite using disciplined assumptions, guided by our best-in-class, proprietary, market research.
Due Diligence
EHCP has highly-integrated relationships with our third-party diligence partners who assist in conducting asset, market, and legal due diligence on prospective investment opportunities. During diligence, our acquisitions and asset management teams determine the feasibility of executing the proposed business plan. Final business plans are made with careful consideration of an investment's risk profile and the investment objectives of the fund or separate account that was allocated the opportunity.
Active Asset Management
The asset management team works with property management and on-site staff to establish financial and ESG goals each calendar year. Our team conducts a biannual hold/sell analysis to opportunistically realize investments, balancing the IRR and MOIC targets of each investment vehicle.